I’m a tax lawyer based in San Francisco (www.WoodLLP.com), but I handle tax matters everywhere. I enjoy untangling a tax mess from the past, disputing taxes with the government or planning taxes for the future. One of my specialties is advising about lawsuit payments. Whether you’re receiving or paying a legal settlement, you can probably improve your tax position. I write frequently about taxes, from expatriation to sales tax, from selling your company to restitution. I’ve written over 30 tax books, but my best seller is still Taxation of Damage Awards and Settlement Payments. Contact me at wood@WoodLLP.com.

There's No SPF For IRS Tanning Tax

Another way to look at the result is that the customer paid the tanning tax when paying for tanning the first time, thus generating bonus points. But the points evidently accrue whether it’s tanning or other goods or service purchased. Thus, the IRS could actually be missing out on some tanning tax here, though, administratively the calculation nightmare may not be worth it.

The IRS also confronted the question of how you divvy up amounts when a single price is paid for multiple services that include tanning. When prices are bundled, the amount paid for the indoor tanning must be determined. The excise tax applies to that amount.

Robert W. Wood practices law with Wood LLP, in San Francisco. The author of more than 30 books, including Taxation of Damage Awards & Settlement Payments (4th Ed. 2009, Tax Institute), he can be reached at Wood@WoodLLP.com. This discussion is not intended as legal advice, and cannot be relied upon for any purpose without the services of a qualified professional.

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